Tuesday, January 18, 2005
Over the weekend the Democrats fanned out to the Sunday morning talk shows to berate W for taking on the Third Rail of American Politics, more commonly known as Social Security. It looks like their claim to relevance will be there is no looming fiscal crisis regarding Social Security, despite all the evidence to the contrary.
I'm not a great numbers person, but even I can see the problem. The number of workers contributing to the general fund is decreasing. The Baby Boom Generation is getting ready to retire. It won't be long until outlays outstrip contributions. In the business world, we have a term for this. We call it INSOLVENCY. This is a BAD THING. Anytime your expenses outstrip your revenues, your program, company, or organization will quickly go under.
With the current Social Security system, there are three things that can (but won't) be done to shore up the system. They are:
1. Raise the retirement age.Those are the only three options most people in Washington are willing to explore. They have been in Washington so long they fail to realize there is a way to increase the rate of return on the funds invested in Social Security. These funds are currently invested at the lowest possible return rate. Some places this rate is claimed to be about 1%. With inflationary forces being what they are, this means you could actually end up losing some of the principle amount - that which you invested in the first place.
2. Raise the Social Security Withholding Tax.
3. Cut benefits.
Nobody in their right mind would invest some 13% of their income in this system. If this was the rate offered by your 401K, you'd take your financial advisor and throw him/her under the bus.
This brings up another important point. I have tried to explain this in the past, but you leftist, socialist, poverty redistributing boneheads can't seem to get the idea through your over educated thick heads. I will therefore initiate the use of colorful metaphors to improve your educational absorption levels. Read the following very slowly and carefully:
IT'S MY MONEY, DAMMIT!
I go to work (most) every day. I'm very good at my chose profession, so therefore I make a fairly decent living. The money I make is mine first. Not yours. Frankly, I'm really tired of the way you invest it. A monkey throwing darts at a stock table can do better than 1%.
W ran on this platform. People like knowing they'll actually be able to keep more of what they earn and put it towards a more comfortable retirement rather than throwing it down another government rathole.
It really is that simple.
Here endeth the lesson.
PS. Go Condi!!